Premium is like a better version of something else
Answer:
Month. Machine Hours. Total costs
January. 1,800 $21,500
February. 2,900 $23,200
March. 1,000. $19,750
April. 2,400. $21,000
May. 3,400. $23,900
High-Low method = 23, 900 + 21,000
= 44,900
Answer:
$5,800
Explanation:
Calculation to prepare a December income statement for Hawkin.
INCOME STATEMENT
Revenues:
Services revenue $16,000
Expenses:
Rent expense $1500
Wages expense $8000
Utilities expense $700
Total expenses $10200
Net income $5800
($16,000-$10,200)
Therefore December income statement for Hawkin is $5,800
Answer:
No he should not buy this stock.
Explanation:
The stock pays a constant dividend thus it means it is a zero growth stock. The formula to calculate the fair price of a zero dividend growth stock is as follows,
- Where D represents dividend
- k represents required rate of return
- P = 1.54 / 0.141 = 10.92
The fair price of the stock according to the Dividend discount model is 10.92 while the stock is trading at 21.27 which means that the stock is overpriced. So, it should not be purchased.
